Question

what is the difference between working capital and fixed capital

Answer 1

Fixed capital investments represent the acquisition and maintenance of long-term assets. A fixed capital investment can be tangible asset, such as a building, or an intangible asset, such as an intellectual property.
Working capital refers to the deployment of financial resources in the day-to-day business operations. Investing in working capital involves acquiring short-term assets and incurring short-term liabilities. The fixed capital investment and working capital investment activities of the business are reported on a company's balance sheet.

Answer 2

fixed capital is capital which is used in production over many years

fixed capital is one time investment

for eg building,tools , machinery




working capital is the capital which is used up in production

it requires investment time to time

for eg, raw material and money in hand